PROJECT PLANNING AND BUDGETING Objectives: To understand the main planning processes used to prepare a project implementation plan and budget
What is an implementation plan? The implementation plan is a key tool for monitoring project operations. It helps the team in charge of implementation to see whether the activities are carried out on time, by the right people within the planned budget. It also gives you an insight into whether the activities actually lead to the outputs defined in the logical framework
What are the operational project planning processes? As mentioned in the previous section, project planning is part of the design phase as one of the four subsequent steps of project design. (Step 3)
The project design requires an implementation plan (also called work plan) for the activities listed in the logframe. The work plan demonstrates that the project is feasible in terms of responsibilities, schedule and resources. It is the basis for monitoring the operations of the project. It allows the project manager to see whether all the planned activities are implemented in the planned time, by the right staff and within the planned budget. Some donors ask for the implementation plan before giving their approval. The work plan usually needs to be adjusted just before the project operations start and during the implementation.
The work plan is established by the project design team and consists of the following four matrices: • A work breakdown structure (or work breakdown matrix), which lists the activities and specific tasks. • A responsibility matrix, which sets out who is responsible for each activity. • A calendar of activities, which states when each activity will be completed. • A resource (inputs) plan, which sets out the requirements for staff, equipment and materials and for the budget preparation, giving the cost of the resources needed. Those tools allow the project team in charge of execution to monitor the implementation of the project activities and outputs once the project is operational. 3.1 The work breakdown Structure
A work breakdown structure is used to prepare the plan of operation and must be carried out before any of the other steps can be taken. It sets out the activities and tasks required for each output. This is the basis for the subsequent steps, such as allocating responsibilities, scheduling activities and estimating resources and budget.
Project’s activities can be broken down into sub-activities, tasks and sometimes sub-tasks. This improves the accuracy of cost estimates and enhances monitoring of project activities and outputs. It also provides improved reporting on obligations and actual expenditure to carry out implementation and achieve the project outputs. You start by identifying the activities, sub-activities and tasks required for each output. The format of a work breakdown matrix can be the following:
Example:
3.2 Responsibility matrix
Good project planning ensures that responsibility for outputs and activities is assigned to teams or individuals The responsibility matrix sets out who is responsible for each activity by allocating duties to different people within the team. All the activities required of a particular individual or organization form their job description or terms of reference for their involvement in the project. This helps in coordinating the work of team members, contractors or partners:
3.3 Calendar of activities
Time is important in any planning process. Scheduling is a way of focusing managerial attention on the time factor, on critical events and on priorities. The calendar states when each activity starts, how long it lasts and when it will be completed. This is usually presented in the form of a bar chart, which sets out the sequence of activities and links them to critical events or milestones.
The recommended tool is called a Gantt chart. It is simple but useful. It is easy to read and can be used to track progress against time. The chart uses the activities from the work breakdown matrix as headings for each row, and time units (years, quarters, months, weeks, etc.) as the headings for each column.
Key actions in preparing a calendar of activities for each output 1) Use the work breakdown structure and decide on the level of detail required. This may differ from the level of detail used to prepare the responsibility matrix. 2) Identify the sequence in which the tasks should be performed. Re-arrange the order (rows) of the work breakdown structure to reflect the sequence. 3) Decide whether you will use years, seasons, quarters, months, weeks or days to measure time. 4) Prepare the format of the calendar. The work breakdown structure is presented in the left-hand column and the time scale is presented across the top rows.
For the different outputs/activities, you can add critical events and quantities, or shade in the table cells to indicate the time during which the activity will be carried out. For the different outputs/activities, you can add critical events and quantities, or shade in the table cells to indicate the time during which the activity will be carried out.
Example of calendar of activities (also called a Gantt Chart):
3.4 Resource plan and budget
A resource plan sets out the requirements and costs for all necessary inputs: personnel, basic office premises or facilities, equipment and materials, or services such as special subcontracting supplies, training workshops and other miscellaneous inputs.
The results-based management approach prepares the resource plan on the basis of the activities in the work breakdown matrix and calendar. For each activity, a list of inputs is prepared, and these can then be aggregated by category (raw materials, equipment, personnel, etc.) to produce an overall project procurement plan.
The resources required to implement the activities associated with each output should be tabulated. For the implementation plan, it is rarely necessary to estimate resource requirements at sub-activity level. The table should list resource requirements and the amount of each resource required.
The resource plan is the basis for the budget preparation. It allows you to assess the cost of each activity exactly. It is important to put the management needs, such as staff and administrative costs, in the resource plan, and then to transfer those costs to the budget format per heading: total staff, equipment, training, etc.
Example of a Resource Plan:
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Objectives: To understand the main planning processes used to prepare a project implementation plan and budget
What is an implementation plan?
The implementation plan is a key tool for monitoring project operations. It helps the team in charge of implementation to see whether the activities are carried out on time, by the right people within the planned budget. It also gives you an insight into whether the activities actually lead to the outputs defined in the logical framework
What are the operational project planning processes?
As mentioned in the previous section, project planning is part of the design phase as one of the four subsequent steps of project design. (Step 3)
The project design requires an implementation plan (also called work plan) for the activities listed in the logframe. The work plan demonstrates that the project is feasible in terms of responsibilities, schedule and resources. It is the basis for monitoring the operations of the project. It allows the project manager to see whether all the planned activities are implemented in the planned time, by the right staff and within the planned budget.
Some donors ask for the implementation plan before giving their approval. The work plan usually needs to be adjusted just before the project operations start and during the implementation.
The work plan is established by the project design team and consists of the following four matrices:
• A work breakdown structure (or work breakdown matrix), which lists the activities and specific tasks.
• A responsibility matrix, which sets out who is responsible for each activity.
• A calendar of activities, which states when each activity will be completed.
• A resource (inputs) plan, which sets out the requirements for staff, equipment and materials and for the budget preparation, giving the cost of the resources needed.
Those tools allow the project team in charge of execution to monitor the implementation of the project activities and outputs once the project is operational.
3.1 The work breakdown Structure
A work breakdown structure is used to prepare the plan of operation and must be carried out before any of the other steps can be taken. It sets out the activities and tasks required for each output. This is the basis for the subsequent steps, such as allocating responsibilities, scheduling activities and estimating resources and budget.
Project’s activities can be broken down into sub-activities, tasks and sometimes sub-tasks. This improves the accuracy of cost estimates and enhances monitoring of project activities and outputs. It also provides improved reporting on obligations and actual expenditure to carry out implementation and achieve the project outputs. You start by identifying the activities, sub-activities and tasks required for each output.
The format of a work breakdown matrix can be the following:
Example:
3.2 Responsibility matrix
Good project planning ensures that responsibility for outputs and activities is assigned to teams or individuals The responsibility matrix sets out who is responsible for each activity by allocating duties to different people within the team. All the activities required of a particular individual or organization form their job description or terms of reference for their involvement in the project. This helps in coordinating the work of team members, contractors or partners:
3.3 Calendar of activities
Time is important in any planning process. Scheduling is a way of focusing managerial attention on the time factor, on critical events and on priorities. The calendar states when each activity starts, how long it lasts and when it will be completed. This is usually presented in the form of a bar chart, which sets out the sequence of activities and links them to critical events or milestones.
The recommended tool is called a Gantt chart. It is simple but useful. It is easy to read and can be used to track progress against time. The chart uses the activities from the work breakdown matrix as headings for each row, and time units (years, quarters, months, weeks, etc.) as the headings for each column.
Key actions in preparing a calendar of activities for each output
1) Use the work breakdown structure and decide on the level of detail required. This may differ from the level of detail used to prepare the responsibility matrix.
2) Identify the sequence in which the tasks should be performed. Re-arrange the order (rows) of the work breakdown structure to reflect the sequence.
3) Decide whether you will use years, seasons, quarters, months, weeks or days to measure time.
4) Prepare the format of the calendar. The work breakdown structure is presented in the left-hand column and the time scale is presented across the top rows.
For the different outputs/activities, you can add critical events and quantities, or shade in the table cells to indicate the time during which the activity will be carried out.
For the different outputs/activities, you can add critical events and quantities, or shade in the table cells to indicate the time during which the activity will be carried out.
Example of calendar of activities (also called a Gantt Chart):
3.4 Resource plan and budget
A resource plan sets out the requirements and costs for all necessary inputs: personnel, basic office premises or facilities, equipment and materials, or services such as special subcontracting supplies, training workshops and other miscellaneous inputs.
The results-based management approach prepares the resource plan on the basis of the activities in the work breakdown matrix and calendar. For each activity, a list of inputs is prepared, and these can then be aggregated by category (raw materials, equipment, personnel, etc.) to produce an overall project procurement plan.
The resources required to implement the activities associated with each output should be tabulated. For the implementation plan, it is rarely necessary to estimate resource requirements at sub-activity level. The table should list resource requirements and the amount of each resource required.
The resource plan is the basis for the budget preparation. It allows you to assess the cost of each activity exactly. It is important to put the management needs, such as staff and administrative costs, in the resource plan, and then to transfer those costs to the budget format per heading: total staff, equipment, training, etc.
Example of a Resource Plan: